10-Q · April 30, 2026
UDR reported Q1 2026 results that were slightly below revenue expectations, with actual revenue of $423.3 million compared to estimates of $426.7 million, resulting in a revenue miss of 0.79%. However, diluted EPS met…
Earnings analysis · 10-Q
UDR earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
UDR delivered modestly softer Q2 revenue of $422.9M, while same-store NOI rose 1.4%; however, a 30-basis-point contraction in same-store margin reflects expense growth exceeding rental-income growth. GAAP EPS increased…
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UDR delivered modestly softer Q2 revenue of $422.9M, while same-store NOI rose 1.4%; however, a 30-basis-point contraction in same-store margin reflects expense growth exceeding rental-income growth. GAAP EPS increased to $0.21 from $0.11 due largely to a $35.7M property-sale gain, whereas underlying FFOA was flat at $0.64 per share. Liquidity is supported by an undrawn $1.3B revolver, but $780.0M of unsecured maturities remaining in 2026 and $693.0M of unhedged variable-rate debt remain key financing considerations.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.21
- Operating margin
- 68.6%
What stood out
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Revenue modestly lower; GAAP EPS higher YoY
Q2 revenue was $422.9M, down $3.1M (0.7%) sequentially from $426M in Q1 2026 and down $2.1M (0.5%) from $425M in Q2 2025. GAAP diluted EPS was $0.21, versus $0.11 a year earlier; FFOA per diluted share was unchanged at $0.64.
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Same-store NOI returned to growth
Same-store NOI grew 1.4% year over year to $275.6M as rental income rose 1.8% to $401.7M. Higher rental rates contributed $2.4M, reimbursement/other income added $2.8M, and lower bad debt added $2.3M.
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Expense growth compressed property margin
Same-store property operating margin compressed 30 basis points to 68.6% from 68.9%. Operating expenses increased 2.6% ($3.2M), including $1.3M more real-estate tax, $0.9M more utilities, and $0.6M more personnel expense.
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Property-sale gain lifted GAAP earnings
GAAP net income attributable to common stockholders increased to $67.8M from $36.5M, principally because UDR recognized a $35.7M gain on the Nashville community sale. This was partly offset by $5.2M higher other operating expense, primarily RealPage-related legal fees.
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Operating cash flow softened; capex declined
Six-month operating cash flow was $390.9M, down $15.6M from $406.5M a year earlier, primarily due to lower operating distributions from unconsolidated ventures. Total capex declined 9.7% to $108.4M, or $1,991 per stabilized home; implied six-month operating cash flow less capex was $282.6M.
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Capital returns funded amid ample revolver capacity
Liquidity remains substantial: the $1.3B revolver had no borrowings, while commercial paper outstanding was $480.0M at a 4.01% weighted-average annualized rate. UDR repurchased 8.2M shares for $300.3M in the first half and has 25.524M shares remaining under its authorization.
What to watch
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Expense inflation is outpacing rental-income growth
Same-store margin fell to 68.6% from 68.9% as operating expense rose 2.6% while rental income increased 1.8%. Management cited higher assessed values, commodity prices, annual merit increases, severance, and vendor costs as expense pressures.
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Rate sensitivity and near-term refinancing needs
UDR had $693.0M of unhedged variable-rate debt at June 30, 2026. A 100-basis-point increase in market rates would have increased six-month interest expense by $3.3M; additionally, $780.0M of unsecured debt matures during the remainder of 2026.
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RealPage litigation costs increased materially
Legal and other costs used in FFOA adjustments were $8.4M in Q2 2026 versus $3.4M in Q2 2025, while reported other operating expenses rose $5.2M year over year, primarily due to RealPage antitrust-related cases. The filing identifies UDR as a defendant in multiple related actions.
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Geographic concentration heightens local-market risk
Portfolio concentration remains meaningful: 75.0% of six-month NOI came from eight markets, led by Metropolitan D.C. at 17.0%, Boston at 11.5%, Orange County at 11.2%, and the San Francisco Bay Area at 9.3%. Local supply, regulation, or economic weakness in these markets could disproportionately affect results.
Management's outlook
The 10-Q does not provide a quantitative earnings or revenue outlook. Management expects short-term liquidity to be met through property operating cash flow and credit facilities, and expects to address the remaining 2026 maturities using operating cash flow, capital-market proceeds, property dispositions, and/or credit facilities/commercial paper.
Earlier filings 4
10-K · February 17, 2026
UDR reported modest operating growth in 2025 with total revenues up ~2.4% year-over-year and same-store revenue and NOI growth of 2.4% and 2.3%, respectively, while net income attributable to common stockholders surged…
10-Q · July 31, 2024
UDR reported a modest revenue increase quarter-over-quarter and year-over-year with total revenues of $415,320,000 for Q2 2024 (up $10,772,000 vs Q2 2023). Operating income and diluted EPS fell sharply to $68,666,000…
10-Q · May 1, 2024
UDR reported quarter-over-quarter improvement in operating performance with total revenues of $413,634,000 (up $14,085,000 or 3.5% vs. $399,549,000 in Q1 2023) and operating income of $79,759,000 (up $13,575,000 or…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.